VANCOUVER, British Columbia, Oct. 09, 2019 (GLOBE NEWSWIRE) -- Pure Gold Mining Inc. (PGM – TSX-V, PUR – LSE) (“Pure Gold” or the “Company”) is pleased to announce that it has intersected gold mineralization in a widespread gap midway between the Company’s high grade 8 Zone at depth and near surface Russet South mineral resources, clearly establishing the prospectivity of this setting and opening up a brand new target area for discovery.
Building predictable gold continuity and expanding the scale of the high grade Madsen gold complex has been a central focus and achievement for Pure Gold’s exploration team over the past four years. During that period, resource growth and transformative discoveries have been made at the Austin, McVeigh, Russet South, Fork and Wedge zones; which, although referred to by different names, are all part of one semi-continuous, coherent gold system (see figure 1).
One widely anticipated target area that has received very little previous exploration focus is the altered structure that links the high grade 8 Zone (below 1,000 metres depth) and the up-dip continuation at Russet South which outcrops over a broad area. This panel of connective real estate, centered near Balmer assemblage mafic-ultramafic contacts, has a known dip length of 1,500 metres and stretches over seven kilometres. In the 8 Zone at depth, this mafic-ultramafic contact boasts some of the highest grades ever drilled at Madsen including 466.0 g/t over 4.3 metres, including 3,262.5 g/t over 0.6 metres (24-14923-SW), and 342.4 g/t over 5.5 metres, including 4,739.3 g/t over 0.4 metres (24-14923-SW-1).1 The outcropping Russet south zone too is characterized by high grade gold including 76.6 g/t over 2.1 metres (PG16-233) and 39.1 over 2.9 metres (PG15-031).2
An extensive relogging program by Pure Gold has established structural control of mineralization in the 8 Zone and has identified the right host rock and alteration updip of the 8 Zone. A new drill hole targeting the midpoint between these two widely separated zones has intersected a 10 metre wide, gold bearing zone (2.2 g/t gold over 10.4 metres) including 4.9 g/t gold over 2.1 metres situated within ultramafic rocks of the Balmer assemblage. This result is more than just another gold bearing intercept at Madsen. It establishes a vital mineralized pierce point into an expansive gap, highlighting the potential for a new gold corridor that stretches from the outcropping Russet South zones to the deeper high grade 8 Zone, and demonstrates the tremendous prospectivity of this setting. See figure 2 for a cross section through Russet South and the 8 Zone.
Drilling highlights:
- Visible gold and intense alteration approximately 750 metres up dip from the 8 Zone mineral reserve, returned 4.9 g/t gold over 2.1 metres from drill hole PG19-667. This intercept is localized within a ten metre interval characterized by numerous gold-bearing blue grey quartz veins, with 20 occurrences of visible gold noted over the interval. Importantly, these blue-grey quartz veins are diagnostic of 8 Zone style mineralization;
- With the continued success of the exploration program, the Company has expanded the 2019 drill program to 20,000 metres, with two surface rigs currently active. A third rig will commence in late November to begin production level underground drilling in long hole stopes scheduled for development early in the mine life.
“Madsen continues to be a dynamic project with resource and production potential well beyond the feasibility base case. Outside of the feasibility mine plan we have made multiple discoveries and established new mineral resources within a system that keeps expanding along strike” stated Darin Labrenz, President and CEO of Pure Gold. “This latest drilling represents a sea change in exploration prospectivity, establishing the tremendous potential of a brand new mineralized corridor that is anchored by the high grade 8 Zone at depth and the outcropping Fork and Russet South zones at surface.”
Defining the “8 Zone”
The 8 Zone is the highest grade zone known on the property, with an indicated resource grading 20.5 g/t gold (458,000 tonnes containing 301,000 ounces), and an inferred resource grading 12.4 g/t gold (202,000 tonnes containing 80,000 ounces). 1 It is characterized by numerous high grade drill intercepts such as those referenced above and others such as 674.0 g/t gold over 1.8 metres (including 3,066.5 g/t gold over 0.27 metres) from hole 24-14850-SV and 120.4 g/t gold over 8.2 metres (including 1,362.5 g/t gold over 0.25 metres and 2,244.3 g/t gold over 0.18 metres) from drill hole 24-14850-S.3 The 8 Zone remains open for expansion and, as modelled, has dimensions of approximately 130 metres of strike extent, 700 metres of dip extent and widths ranging from 2 to 18 metres.
Geologically analogous to the High Grade Zone at Newmont Goldcorp’s Red Lake Mine, Pure Gold’s 8 Zone is located near to a mafic-ultramafic contact, exhibits strong amphiphole-biotite alteration and deformed blue-grey quartz veins often carrying abundant visible gold.4 The near surface discoveries at Wedge (MJ), Fork (footwall) and Russet South share a similar style of mineralization and geologic setting with the 8 Zone, and together form a prospective corridor that spans more than 3.5 kilometres of strike extent and over 1.5 kilometres of dip extent (see figure 3).
For a set of figures showing mineral resource locations in relation to drilling and a cross section of Russet South to the 8 Zone, click link below:
http://puregoldmining.ca/sites/default/files/Release_Figures-09102019.pdf
For a complete list of 2019 drill results to date, click link below:
http://puregoldmining.ca/sites/default/files/2019-DH-Intercepts-Table-October-09.pdf
ABOUT THE MADSEN RED LAKE MINE
The Madsen Red Lake Mine is Canada’s highest grade development-stage gold project. Fully funded, the project is on track to deliver near term gold production into a rising Canadian gold price environment, with first production scheduled for late 2020. The orebody is situated within a six kilometre long gold system that is wide open for expansion at depth and along strike and multiple discoveries by the Company suggest potential opportunities for near-term growth.
- Historic drill hole results listed from the 8 Zone were completed prior to the implementation of National Instrument 43-101. A full discussion and cautionary language regarding historic sampling practices can be found in the NI 43-101 technical report titled “Madsen Gold Project Technical Report Feasibility Study for the Madsen Deposit Red Lake, Ontario, Canada“ with an effective date of February 5, 2019, and dated July 5, 2019 (the “Feasibility Study”).
- For further information, see news releases dated November 14, 2016 and March 16, 2015.
- See the technical report titled “Madsen Gold Project Technical Report Feasibility Study for the Madsen Deposit Red Lake, Ontario, Canada“ with an effective date of February 5, 2019, and dated July 5, 2019 (the “Feasibility Study”), for further information, available at www.puregoldmining.ca or under the Company’s Sedar profile at www.sedar.com
- Geological similarities to Newmont-Goldcorp’s Red Lake Mine High Grade Zone are not necessarily indicative of the mineralization at Madsen’s 8 Zone.
QA/QC and Core Sampling Protocols
Drill core samples are submitted to ALS Minerals in Thunder Bay, Ontario for sample preparation by crushing to 70% less than 2 mm, a rotary split of 1 kg, and pulverization of the split to better than 85% passing 75 microns. Sample pulps are shipped to the ALS assay laboratory in North Vancouver, BC for gold analysis with a 30 g fire assay and AAS finish (code Au-AA23). Samples returning >5 g/t Au are re-assayed with a gravimetric finish (code GRA21). Mineralized zones with visible gold and shoulder samples are also analyzed by a 1 kg screen fire assay with screening to 100 microns. A duplicate 30 g fire assay is conducted on the screen undersize with assaying of the entire oversize fraction (code Au-SCR21). Control samples (certified standards and uncertified blanks), along with field, prep and pulp duplicates, are inserted on a regular basis. Results are assessed for accuracy, precision, and contamination on an ongoing basis.
Qualified Persons and 43-101 Disclosure
Phil Smerchanski, P. Geo., Vice President, Exploration for the Company, is the designated Qualified Person for this news release within the meaning of National Instrument 43-101 (“NI 43-101”) and has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of same.
Our mandate is pure and simple. To dream big. To colour outside the lines. To use smart science and creativity to unlock the Madsen Red Lake Gold Mine in Red Lake, Ontario. And become Canada’s next iconic gold company.
Additional information about the Company and its activities may be found on the Company’s website at www.puregoldmining.ca and under the Company’s profile at www.sedar.com.
ON BEHALF OF THE BOARD
"Darin Labrenz"
Darin Labrenz, President & CEO
Investor inquiries:
Adam Buchanan, Manager, Investor Relations
Tel: 604-646-8000
info@puregoldmining.ca
Media inquiries:
Gareth Tredway / Annabel de Morgan – Tavistock
Tel: +44 (0) 20 79207150
puregold@tavistock.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pure Gold within the meaning of applicable securities laws, including, but not limited to statements with respect to those that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans, the growth potential of the Madsen Gold Project and opportunities for scalability, the potential for the Russet South, Fork and Wedge deposits to be economically viable, potential conversion of inferred resources to measured and indicated resources, potential extension and expansion of mineral resources and the focus of the Company in the coming months . Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pure Gold and there is no assurance they will prove to be correct.
Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Madsen Gold Project; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company; the timing of future economic studies; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 20, 2019 in the section entitled "Risk Factors", under Pure Gold’s SEDAR profile at www.sedar.com.
Although Pure Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pure Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.